The Missing Link: Our strategy for LinkedIn s Future Success QUT CONSULTING

Transcription

1 The Missing Link: Our strategy for LinkedIn s Future Success QUT CONSULTING

2 Your current challenge How will LinkedIn promote, integrate, monetize Lynda.com s online video courses into its current offering? Where are the synergies? How does LinkedIn create sustainable value for shareholders and customers?

3 Imagine this future

4 Imagine this future LinkedIn is the new age learning and development platform worldwide Trusted career advisor Credible, respected qualifications 132% growth in revenue

5 Our solution What is the missing link: Leveraging Lynda.com Credibility for learning and development Better utilization of big data Dynamic pathways learning and career

6 Introductions QUT s Senior Consulting team: Justin Bindman Arbess Balbarais Sarah Goulding Cameron Jones

7 Today s presentation overview Your key issues and consequences External factors Internal capabilities Options Recommended Strategy Implementation Plan Financial Analysis

8 Your current situation LinkedIn is the world s largest network of professionals 467M members / 7000 countries Continuous acquisition strategy, most recent of which has been Lynda.com

9 Issues & Consequences Uncertainty of ROI on acquisition of Lynda.com Loss of shareholder value Significant growth in elearning High risk of no differentiation Employment landscape is changing uncertainty of future jobs Redundancy of particular subjects

10 External Influences Market Drivers Technology Economic Social Increasing access to more affordable devices New technology requires new specific skills User interfaces becoming more accessible to all age Education in the top industries global Australia Top 3 Disruption is effecting economies globally Jobs for life on significant decline Between years traditional jobs will disappear Skills gap is a leading social issue Growing market for non traditional micro-credentials Upskilling for: keeping a job, advancing career, pursuing hobbies

11 External Influences Influence Importance Impact Generation of big data Quantitative market analysis Significant potential to create additional value through product offerings Changing millennial priorities Market segment growth Identified the need for tailored learning Recent collage graduates and students fastest growing demographic Market potential Potential to capitalize on skill gaps

12 Internal capabilities analysis LinkedIn Lynda.com Brand value Industry positioning User base Product sophistication Customer value Brand recognition Dominant player in the industry Multi-functional userbase Product development ability Connect at marginal transaction costs Brand recognition One of many Learners Production development Learning/ development

13 Options Analysis Problem statement External factors Internal capability Key focus areas: Maximizes synergies Enables sustainable value

14 Options Analysis Focus on early & young learning market Partner with universities for accreditation capability Develop internal accreditation system and learning pathway

15 Options Analysis Focus on early & young learning market Partner with universities for accreditation capability Develop internal accreditation system and learning pathway Synergy Leverage connections parents; childcare centers; schools Sustainable Value Technology will continue to grow Smaller market

16 Options Analysis Synergy Sustainable Value Focus on early & young learning market Leverage connections parents; childcare centers; schools Technology will continue to grow Smaller market Partner with universities for accreditation capability LinkedIn has strong customer base Fails to create the right synergy Open up a large market segment for Lynda.com High cost outlay Develop internal accreditation system and learning pathway

17 Options Analysis Synergy Sustainable Value Focus on early & young learning market Leverage connections parents; childcare centers; schools Technology will continue to grow Smaller market Partner with universities for accreditation capability LinkedIn has strong customer base Fails to create the right synergy Open up a large market segment for Lynda.com High cost outlay Develop internal accreditation system and learning pathway Leverages Lynda.com s value Creates overall brand value Low cost option inhouse Potential high returns

18 Recommended Approach Increased customer base Increased revenue Increased revenue through premium membership Key Features Build internal capability for accredited courses Use data to create client Learning Pathways and Career Pathways 3 Develop internal accreditation system and learning pathway More, happier customers Predictive learning and career needs

19 Value chain Conquering the global talent pipeline Attract and pool candidates & employers Create networks Train and develop Employment

20 Value chain Conquering the global talent pipeline Accredited learning Attract and pool candidates & employers Create networks Train and develop Employment Enhance big data capability Dynamic Learning Pathway Dynamic Career Pathway

21 Customer value Profiles Name: Jessica Age: 24 Prof.: Law graduate (full time) Issues: Employer is looking at IBM Watson (automated legal advice) potential redundancy Name: Rahul Age: 46 Prof.: Tradesman manufacturing (full time) Issues: Factory moving towards automation; limited IT skills; worried for his job

22 Customer value Pathways Career 1 Career 2 Career 3 Career 4 Career 1 Career 2 Career 3 Accred.1 Learning Pathway 1 Learning Pathway 2 Learning Pathway 1 Learning Pathway 2

23 Customer value Use of data for Pathways Career 1 Career 2 Career 3 Career 4 Career 1 Career 2 Career 3 Career 4 Accred.1 Learning Pathway 1 Learning Pathway 2 Learning Pathway 1 Learning Pathway 2

24 Risk and Implementation Plan

25 Risk Analysis # Risk Mitigation Tactic >$100M 1 LinkedIn Learning is unable to create credibility of certification High Develop a rigorous certification process. 3rd party accreditors. Marketing Campaign. Low $50M- $100M $10M- $50M 1 1 $100k- $10M <$100k <5% 5-15% 15-50% 50-75% >75% Rare Unlikely Likely Possible Certain

26 Risk Analysis # Risk Mitigation Tactic LinkedIn Learning is unable to create credibility of 1 certification Key competitors such as Khan Academy launch 2 accreditation High High Develop a rigorous certification process. 3rd party accreditors. Marketing Campaign. Marketing campaign to leverage the synergy of Linkedin & Lynda. Low Low >$100M $50M- $100M $10M- $50M $100k- $10M <$100k 1 2 <5% 5-15% 15-50% 50-75% >75% Rare Unlikely Likely Possible Certain 2 1

27 Risk Analysis # Risk Mitigation Tactic LinkedIn Learning is unable to create credibility of 1 certification Key competitors such as Khan Academy launch 2 accreditation 3 Linkedin Learning uptake is slow High High High Develop a rigorous certification process. 3rd party accreditors. Marketing Campaign. Marketing campaign to leverage the synergy of Linkedin & Lynda. Launch events, social media, and Linkedin marketing channels. Low Low Low >$100M $50M- $100M $10M- $50M $100k- $10M <$100k <5% 5-15% 15-50% 50-75% >75% Rare Unlikely Likely Possible Certain 3 2 1

28 Implementation Strategy Integrate It The 3 Horizons of Success Value Added Data Analytics IT Platform Development

29 Implementation Strategy The 3 Horizons of Success Integrate It Promote It Value Added Marketing Launch Events Data Analytics IT Platform Development

30 Implementation Strategy The 3 Horizons of Success Integrate It Promote It Scale It Value Added Marketing Launch Events Infrastructure upgrades R&D Data Analytics IT Platform Development

31 Implementation Plan Strategy Tactic HR Recruiting - Integration Taskforce $2,905 $3,105 $255 Data Analytics - Lynda & Linkedin Integrate Accreditation Internal Capability $845 IT Platform Development $7,500 $9,500 $750

32 Implementation Plan Strategy Tactic HR Recruiting - Integration Taskforce $2,905 $3,105 $255 Data Analytics - Lynda & Linkedin Integrate Accreditation Internal Capability Career & Learnings Pathways Launch Event $845 IT Platform Development $7,500 $9,500 Marketing through Linkedin Promote Other Social Media Marketing $1,890 $565 $750 $1,650 $355 $125

33 Implementation Plan Strategy Tactic HR Recruiting - Integration Taskforce $2,905 $3,105 $255 Data Analytics - Lynda & Linkedin Integrate Accreditation Internal Capability Career & Learnings Pathways Launch Event $845 IT Platform Development $7,500 $9,500 Promote Other Social Media Marketing $1,890 $565 Scale Marketing through Linkedin $750 $1,650 $355 $125 Scale IT infrastructure to meet demand $2,250 V2.0 Platform R&D $305 Totals - In $1000's $12,000 $16,500 $3,500

34 Financial Analysis Assumptions Market Size Revenue Streams Price Key Assumptions Linkedin has 467m members Linkedin has 39M students Lynda has 100m members Talent solutions are 64% of Linkedin Revenue Marketing solutions are 19% of Linkedin Revenue Subscription services are 17% of Linkedin Revenue Lynda charges $25 and $37.5 per month LinkedIn premium is $29.99 per month

35 Profit As Is -$16 -$166 -$193 -$174 -$119 Profit Proposed -$166 $6 $27 $54 Financial Analysis Overview Metric - In Millions Revenue As Is $2,219 $2,991 $4,038 $5,411 $7,196 Revenue Proposed $2,991 $4,217 $6,220 $8,211 Revenue As Is - Growth % 145% 135% 135% 134% 133% Revenue Proposed - Growth % 141% 136% 132% Revenue Difference $179 $810 $1,015 Talent Solutions $113 $502 $619 Marketing Solutions $29 $113 $132 Subscriptions $38 $194 $264 Member Subscriptions Expenses As Is $2,235 $3,157 $4,230 $5,584 $7,315 Expenses Proposed $3,157 $4,211 $6,193 $8,156 CAPEX $12 $17 $4

36 Financial Analysis Revenue & Expenses Billions $8 $7 $6 $5 1M Members Data Analytics $4 $ Revenue As Is Revenue Proposed Expenses As Is Expenses Proposed

37 Financial Analysis Revenue & Expenses Billions $8 $7 $6 $5 $4 $3 5M Members Marketing 1M Members Data Analytics Revenue As Is Revenue Proposed Expenses As Is Expenses Proposed

38 Financial Analysis Revenue & Expenses Billions $8 $7 5M Members Marketing 7M Members 132% Growth $6 $5 1M Members Data Analytics $4 $ Revenue As Is Revenue Proposed Expenses As Is Expenses Proposed

39 Financial Analysis Profits Millions $50 $0 -$50 Reduced CAPEX Increased Subscriptions $100 -$150 -$200 Profit As Is Profit Proposed

40 Financial Analysis Profits Millions $50 $0 -$50 Reduced CAPEX Increased Subscriptions Twofold Profit 2.7 ROI $100 -$150 -$200 Profit As Is Profit Proposed

41 Call to action Market drivers indicate the timing is right Huge opportunity to create value through data analytics Extensive and complimentary internal capabilities Significant revenue potential

42 Call to action Leveraging Lynda.com Credibility for learning and development Better utilization of big data Dynamic pathways learning and career